Altice Europe — Altice International — Q4 2022 Earnings Presentation
19 slides from Altice Europe's earnings presentation, Feb 28, 2023
Slide 1: Altice International Q4 & FY 2022 results
Altice International Q4 & FY 2022 results February 28, 2023
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS Certain statements in this presentation constitute forward-looking statements. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this presentation, including, without limitatio
Slide 3: Q4 & FY 2022 Summary
Q4 & FY 2022 Summary FY 2022 guidance achieved: Altice International revenue, EBITDA and OpFCF growth on a reported basis • Total residential revenue grew by +9.6% YoY on a reported basis (+3.9% constant currency) • Total revenue grew by +15.0% YoY on a reported basis (+10.2% constant currency) • To
Slide 4: Operational Update – Telecom (Portugal, Israel, Dominican Republic)
Operational Update – Telecom (Portugal, Israel, Dominican Republic) Fixed – Update on FTTH Mobile – Update on 5G Coverage Nationwide ~50% ~15% Spectrum secured FTTH gross adds % Population Launched 90% 30% 15% 90% 55% coverage Feb-22 as % of fixed adds Churn 7% n.m. 11% For footnotes see slide
Slide 5: Telecom Residential Trends YoY
Telecom Residential Trends YoY Portugal Israel Dominican Republic B2C fixed base: 1.7m +2% YoY B2C fixed base: 1.0m +2% YoY B2C fixed base: 0.4m +1% YoY B2C mobile postpaid base: 2.9m +5% YoY B2C mobile postpaid base: 1.3m +5% YoY B2C total mobile base: 3.1m +4% YoY +6.1% +5.4% +5.4% +4.9% +4.6% +4.
Slide 6: Operational Update – AdTech (Teads)
Operational Update – AdTech (Teads) Q4 2022 Key Highlights Revenue (€m) Unique combination of scale, growth and profitability continues to deliver 215 186 202 Teads offers solutions for 2.8k advertisers globally 139 142 130 149 153 118 109 107 119 119 84 90 103 76 82 79 Continued product investmen
Slide 7: Altice International Revenue Trends
Altice International Revenue Trends Q4 2022 FY 2022 Q4 2022 revenue trends YoY (€m) +11.7% (CC +8.7%) +15.0% (CC +10.2%) • Total: +11.7% (CC +8.7%) 1,365 5,030 • Portugal: +11.3% 1,222 4,375 624 • Israel: +13.2% (CC +11.2%) 215 202 573 602 • Dominican Republic: +19.1% (CC +2.6%) 157 132 493 • Teads:
Slide 8: Altice International Financials
Altice International Financials Growth YoY Growth YoY Growth YoY Growth YoY Q4-21 Q4-22 FY-21 FY-22 €m Reported Constant FX Reported Constant FX Portugal 624 695 +11.3% +11.3% 2,314 2,630 +13.7% +13.7% Israel 270 305 +13.2% +11.2% 1,006 1,196 +19.0% +10.0% Dominican Republic 132 157 +19.1% +2.6% 493
Slide 9: FY 2022 Free Cash Flow
FY 2022 Free Cash Flow (€m) 1,790 (951) 839 (336) 25 (111) (214) 230 (31) 58 Adjusted Accrued OpFCF Interest Interest Pension Taxes Dividends to Change in WC FCF EBITDA Capex paid received paydown minorities & other For footnotes see slide 19 9
Slide 10: Capital Structure and Debt Maturity
Capital Structure and Debt Maturity Restricted Group Net debt €8,040m (€bn) WAL 5.2 years 0.02 0.02 0.79 0.19 1.82 2.91 2.72 WACD 4.8% Fixed interest 82% Net leverage 4.2x Net leverage adjusted for Altice UK investment 3.9x Liquidity €1.05bn Unsecured Net debt €675m WAL 5.0 years WACD 4.8% Secured N
Slide 11: Guidance
Guidance • Total revenue growth of +15.0% YoY on a reported basis (constant currency +10.2%) • Total EBITDA growth of +8.9% YoY on a reported basis (constant currency +4.5%) 2022 Achievements • OpFCF growth of +11.0% YoY on a reported basis (constant currency +7.2%) • Ending net leverage of 4.
Slide 12: Q&A
Q&A 12 alti
Slide 13: Appendix
Appendix 13
Slide 14: ESG Key Highlights
ESG Key Highlights 2022 Achievements Commitments Ambitions • Stakeholder consultation and materiality • Reduce greenhouse gas emissions in • Net zero emissions target by 2050 analysis process carried out in 2022 each geography throughout geographies. By 2030 Altice Portugal undertakes a 90% reductio
Slide 15: Reconciliation to Swap Adjusted Debt as of December 31, 2022
Reconciliation to Swap Adjusted Debt as of December 31, 2022 €m Actual Total Debenture and Loans from Financial Institutions 8,383 Value of debenture and loans from financial Institutions in foreign currency converted at closing FX rate -6,698 Value of debenture and loans from financial institutions
Slide 16: Leverage Reconciliation
Leverage Reconciliation €m Actual Gross Debt Consolidated 8,510 Cash -470 Net Debt Consolidated 8,040 LTM EBITDA Consolidated 1,790 Gross Leverage 4.8x Net Leverage 4.5x Net Leverage adjusted for Altice UK investment 4.2x L2QA EBITDA Consolidated 1,897 Gross Leverage 4.5x Net Leverage 4.2x Net lever
Slide 17: Non-GAAP Reconciliation to Unaudited GAAP Measures
Non-GAAP Reconciliation to Unaudited GAAP Measures €m Q1-22 Q2-22 Q3-22 Q4-22 Revenue - Financial Statements 1,148 1,221 1,296 1,365 Purchasing and subcontracting costs -298 -314 -351 -351 Other operating expenses -243 -258 -266 -294 Staff costs and employee benefits -163 -170 -179 -186 Total 444 47
Slide 18: Q4 2022 Free Cash Flow and Change in Net Debt
Q4 2022 Free Cash Flow and Change in Net Debt (€m) 490 (268) 222 (48) (30) 130 (47) 35 (2) (56) (78) (14) (19) Adjusted Accrued OpFCF Interest Pension Taxes Dividends to Change in WC FCF Spectrum & M&A Financing & Change in EBITDA Capex paid paydown minorities & other other non FX impact net debt re
Slide 19: Footnotes
Footnotes Portugal mobile base and year over year growth is pro forma for the mobile postpaid base clean-up of 502k SIM cards in Q4 2022, with no usage Slides 3, 5 and zero associated revenue Teads revenue is presented after discounts (consistent with the revenue as recognized in the Altice Internat